Video: Chip Cards are Here Now What

It’s safe to assume that almost everyone has at least heard about chip cards at this point. And although those of us in the payments industry know all about these new cards designed to protect consumers’ card data during transactions,  consumers might still be unsure about what this means for them.   

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Chip Cards are Here - Now What?

May 19, 2017

Video: Chip Cards are Here Now What

It’s safe to assume that almost everyone has at least heard about chip cards at this point. And although those of us in the payments industry know all about these new cards designed to protect consumers’ card data during transactions,  consumers might still be unsure about what this means for them. 

While chip cards have been the preferred way to keep payments secure for years internationally, the U.S. payments industry began the move to chip (or EMV®) cards about three years ago.

Oct. 1, 2015 marked a milestone in the migration as liability in cases of fraud shifted to the entity that couldn’t process a chip transaction.

So in the case of fraudulent transactions:

  • Issuers are liable if they have not issued chip cards, and
  • Merchants are liable if they do not have the correct chip card terminal in place to process the transaction.

The primary difference consumers will encounter as they move to chip cards is that they no longer swipe their cards. They now insert them into a reader and leave the card in the terminal until the transaction is complete.  Even though this seems very straight-forward, the industry will continue to focus on educating consumers about this change.

This new technology will essentially make every transaction unique, meaning that if a consumer’s card data is stolen, the information cannot be used to counterfeit a card and then used at a store or in an ATM that is equipped to process chip cards. And the industry agrees that this is a very good thing.

No one thinks fraudsters will just admit defeat and abandon their efforts, though, so focus is shifting toward monitoring future fraud trends and card-not-present transactions.

The bottom line
It's more important than ever to stay engaged in industry groups and linked with trusted advisors and partners going forward. Fraud won’t end with the migration to chip cards, but industry experts say it’s a huge step in the right direction. 

Interested in learning more?